The Worldwide Data Center Interconnect Industry is Expected to Reach $18.3 Billion by 2027 - ResearchAndMarkets.com

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DUBLIN, May 16, 2022--(BUSINESS WIRE)--The "Global Data Center Interconnect Market Size, Share & Industry Trends Analysis Report By Type, By End User, By Application, By Regional Outlook and Forecast, 2021-2027" report has been added to ResearchAndMarkets.com's offering.

The Global Data Center Interconnect Market size is expected to reach $18.3 billion by 2027, rising at a market growth of 13.9% CAGR during the forecast period.

Data centers interconnect creates a network of two or more data centers with the aim of achieving business or IT goals. They can collaborate; pass tasks between one another, and share information and resources due to this interconnectedness. Data center interconnection allows customers to connect to a variety of internet service providers, which is critical if they are in a different area.

Businesses can use this to establish a strong presence both domestically and internationally, allowing them to extend their consumer base and operations. To facilitate simple data, resource sharing, and disaster recovery needs, some major enterprises utilize data center interconnect to connect their own data centers with their extended infrastructure, while others connect to partners, cloud providers, or data center operators.

The Data Center Interconnect (DCI) technology uses high-speed packet-optical communication to connect two or more data centers over short, medium, or long distances. DCI is used by some large enterprises to connect their own data centers inside their extended business infrastructures, while others connect to stakeholders to make data and resource sharing easier or to handle disaster recovery.

The requirement to connect data center assets rapidly, reliably, and cost-effectively is expanding due to the explosion of data and the rise of technologies such as AI and High-Performance Computing (HPC). Data center providers are prioritizing factors such as throughput, latency, streamlined operations and maintenance, intelligence, and security. This is because they can increase inter-data center bandwidth, lower latency, and eliminate packet loss.

Market Growth Factors:

Cloud-based solutions are becoming more popular

The app architecture became so simple with the advent of web-based applications that several apps could be readily hosted on a shared server. This was accomplished without sacrificing considerable performance. However, as the number of users and the complexity of apps increased, shared hosting became obsolete. Businesses moved their apps to dedicated VPS hosting options, which were unsuitable for long periods of time and began to fail users. Owners of small businesses had little choice but to buy an entire dedicated server. The migration of the programme to the new VPS server was the first challenge they faced.

On the other hand, Businesses quickly discovered that the server's exorbitant price was not justified. Mostly, a large amount of the server's resources was not useful. The dedicated server proved to be a bad business decision because firms were paying for the full server regardless of resource consumption.

Rise in need for disaster recovery and business continuity

Users of data centers all throughout the world are concerned about disaster recovery. Disasters such as earthquakes, security assaults, fire outages, and other unanticipated events can all affect IT infrastructure facilities. Proper disaster recovery strategies must be in place for businesses to avoid suffering significant losses as a result of such calamities. Data center interconnection facilities are situated away from users' premises, making them less vulnerable to disasters. These facilities can be controlled remotely, enhancing their disaster recovery capabilities.

As a result, interconnection facilities are expected to become a popular backup and recovery option for enterprises since they allow them to store critical data in a remote place. Hence, the presence of a durable and secure DCI solution can ensure business continuity.

Market Restraining Factors

Capacity constraints

Applications use data centers to store and transport data. The size of information entering or departing a data center can vary dramatically, ranging from hundreds of Gigabits to Terabits. Data center operators face major capacity planning and network engineering issues as video, social media, and distributed application traffic explodes. New types of workloads, such as analytics, machine learning, and the Internet of Things, are putting major capacity constraints on data centers.

Market Segments Covered in the Report:

By Type

  • Products

  • Packet-Switching Networking

  • Optical DCI

  • Software

  • Services

By End User

  • Internet Content Providers/ Carrier-Neutral Providers

  • Communication Service Providers

  • Enterprises

  • Government

By Application

  • Real-time Disaster Recovery & Business Continuity

  • Shared Data & Resources/Server High-availability Clusters (Geoclustering)

  • Workload (VM) & Data (Storage) Mobility

By Geography

  • North America

  • US

  • Canada

  • Mexico

  • Rest of North America

  • Europe

  • Germany

  • UK

  • France

  • Russia

  • Spain

  • Italy

  • Rest of Europe

  • Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Singapore

  • Malaysia

  • Rest of Asia Pacific

  • LAMEA

  • Brazil

  • Argentina

  • UAE

  • Saudi Arabia

  • South Africa

  • Nigeria

  • Rest of LAMEA

Key Market Players

  • Huawei Technologies Co., Ltd.

  • Cisco Systems, Inc.

  • Ciena Corporation

  • Infinera Corporation

  • ADVA Optical Networking SE

  • Nokia Corporation

  • Juniper Networks, Inc.

  • Fujitsu Limited

  • Colt Technology Services Group Limited

  • Extreme Networks, Inc.

For more information about this report visit https://www.researchandmarkets.com/r/81us2x

View source version on businesswire.com: https://www.businesswire.com/news/home/20220516005752/en/

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